TSX.V: SCZ
FSE: 1SZ
VANCOUVER , Jan. 27, 2015 /CNW/ - Santacruz Silver Mining Ltd. ("Santacruz" or the "Company") (SCZ.V) further to the Company's press release of January 5th, 2015 in which Santacruz advised that a pipeline connecting the Rosario Mine tailings impoundment to a secondary settling pond ruptured causing water and tailings material to be discharged outside of the tailings treatment system, the Company provides the following update.
Due to fast action taken by Santacruz site management, including the construction of secondary berms below the actual tailings storage facility, the estimated amount of tailings pulp discharged was limited to approximately 2,000 m3. Currently, 75% of the spill has been cleaned up and restoration activities have commenced. All water samples taken have come back without any indication of contamination. Monitoring will continue on an on-going basis in coordination with local authorities and communities.
Representatives of PROFEPA (the Mexican Federal Agency for Environmental Protection) have been onsite from time to time over the past two weeks to complete their investigations and make recommendations. As part of this process PROFEPA has set out the necessary steps the Company must take to resume operations. These steps include completing a full remediation of the spill area and delivering an engineering report outlining steps for the continued use of the existing tailings storage system or such other alternative solution as is appropriate.
The mitigation of the area impacted by the spill and engineering reports are largely complete giving management of Santacruz confidence that it can complete these steps in a timely fashion. The Company is reviewing alternatives that will allow for the near-term resumption of production activities at the Mine, so that production can safely recommence while the appropriate permanent solution is implemented.
Based upon engineering reports and discussions with PROFEPA, it is management's expectation that the Company should be able to fulfill the above noted requirements and resume operations at the Rosario Mine in the second half of February 2015 . The Company is committed to working very closely with the regulatory agencies and the local communities to resolve this issue in the most effective and environmentally responsible manner. In connection with the tailings discharge incident the Company has been fined by PROFEPA an amount equivalent to approximately US$180,000 . Pursuant to applicable regulations, certain remediation and community related expenses incurred by the Company will be offset against the fine.
President Arturo Préstamo stated, "I commend our staff at the Rosario Mine for their prompt and effective response at the time of the discharge and in the following days with respect to the timely remediation of the spill and their open discussions with local communities and regulators. We are committed to the environment, and the communities that surround us." Mr. Préstamo added; "Our continued focus will be the prompt conclusion of our remediation efforts, completion of the engineering studies for our tailings disposal, and the implementation of an action plan that allows us to bring the Rosario Mine back to production in a timely manner."
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican-focused silver company with a producing mine ( Rosario ); two advanced-stage projects ( San Felipe and Gavilanes ) and an early-stage exploration project (El Gachi). The Company is managed by a technical team of professionals with proven track records in developing, operating and discovering silver mines in Mexico . Our corporate objective is to become a mid-tier silver producer.
'signed'
Arturo Préstamo Elizondo,
President, Chief Executive Officer and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward looking information
Certain statements contained in this news release, such as plans for remediation and outcomes and the expected timeline for resumption of production at Rosario , constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Any forward-looking information that constitutes a financial outlook is intended to provide information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including, that the Company's financial condition and remediation plans do not change as a result of unforeseen events, that the Company obtains required regulatory approvals, future metal prices and that the demand and market outlook for metals do not decline significantly. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and remediation plans change, delays in regulatory approval, risks associated with the interpretation of data, the possibility that results will not be consistent with the Company's expectations, as well as the other risks and uncertainties applicable to mineral exploration and development activities and to the Company as set forth in the Company's Annual Information Form filed under the Company's profile at www.sedar.com. There can be no assurance that any forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements. The Company undertakes no obligation to update forward-looking information or statements, other than as required by applicable law.
SOURCE SantaCruz Silver Mining Ltd.
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